Ascott Residence Trust flags up to 75% fall in half-year DPS
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Ascott Residence Trust's (ART) distribution per stapled security for the six months ended June 30 is expected to fall by as much as 75 per cent from the 3.43 cents recorded in the first half of 2019, the managers said.
A profit guidance yesterday said the stapled group's performance is expected to be "adversely impacted" due to the disruption caused by the pandemic. The managers said they are being prudent in capital and cash flow management and may review the level of distribution payout to stapled security holders.
ART's available income for distribution for the first half of 2020 is expected to be reduced by 55 per cent to 65 per cent from the $74.6 million recorded a year earlier.
Total return for the first half this year is expected to decline by 80 per cent to 90 per cent from the $212.5 million recorded in the same period last year.
ART recorded fair-value gains of $140.6 million after tax and minority interest in the first six months of 2019, including a realised fair-value gain of $135 million from divesting Ascott Raffles Place Singapore.
As the timing of a full recovery remains uncertain, the managers are expecting the revenue per available unit of ART properties to remain "under pressure" in the near term. They said the firm has enough liquidity to meet its operational needs and financial commitments.
ART units closed down 3 per cent at 99.5 cents yesterday.
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